Vermillion Sharpens Focus and Streamlines Operations in 2012
Vermillion's management and Board of Directors have reviewed the company's first complete year of commercialization progress and put in place a plan aimed to leverage the milestones achieved in 2011.
With approximately $22.5 million in cash as of December 31, 2011, the company has commenced a restructuring program to reduce headcount and other expenses. The company intends to reduce cash-based operating expenses to approximately $12 million in 2012. Cash utilization will likely range between $3-4 million in the first quarter of 2012 as the company concludes remaining claim activities related to its emergence from Chapter 11.
1. Operating activities in 2012 will concentrate on supporting Quest's OVA1® commercialization. This will involve building market awareness for OVA1, expanding payer coverage, supporting Quest's reimbursement activities, and growing test volumes.
2. Product development activities will focus on advancing OVA2™, a next generation test for ovarian cancer, and VASCLIR® for the diagnosis of peripheral artery disease which will involve publication support for the positive results achieved in the VASCLIR intended use study, as well as further development of the company's IP portfolio.
3. The company has begun to explore partnerships for its product pipeline, with the goal of accelerating development and bringing additional resources to the commercial effort.
"Given the short-term challenges in both our business and the industry, the company will sharpen its operational focus resulting in an extended runway," said Gail Page, Vermillion's chief executive officer. "The company will place greater focus and priority on those activities that it can deliver upon and explore partnerships which can accelerate the development and commercialization of the oncology and cardiovascular programs."